According to Compounding Quality, Warren Buffett determines the intrinsic value of a stock by focusing on Owner’s Earnings, which is calculated as reported net income plus depreciation and amortization, minus capital expenditures and additional working capital requirements (source: Compounding Quality on Twitter, May 12, 2025). Traders use this approach to assess whether a stock is undervalued or overvalued based on future cash flows, a strategy that can lead to better timing when entering or exiting positions. Understanding Owner’s Earnings is especially relevant for crypto market participants watching for institutional shifts towards value-based investment models.